Jewellery has always been close to the heart of Indians. Be it special occasions or big festivals, jewellery has played a noteworthy role in people’s lives. The jewellery business is booming like never before all thanks to innovative approaches taken by jewellery retailers
Whether a business is trying to determine how to start an online jewellery business in India or they have an established business already, jewellery market statistics can help throw some light on what to expect this year as the economy rises from the slump.
The jewellery business in India and its dynamics changed overnight as the pandemic raged on to every corner of the country. The whole world bore the brunt of the pandemic as businesses crippled in a matter of weeks and months. While the impact can still be felt, there is hope for every industry that is coming back on its feet. A majority of reports say that this shopping behaviour will last post-pandemic too. The question isn’t whether a shift to digital platforms is necessary, but the key question is when?
The pandemic changed how people shopped for jewellery too. Earlier, it was a fun activity to try on jewellery and that in-store experience was the reason why people went to brick-and-mortar stores. Today, the shift is evident. Lockdowns across the globe meant people couldn’t go to their favourite jewellery store to shop for their jewellery. Instead, they had to browse on the store’s app or website or both. The pandemic led to an unprecedented increase in interest in online jewellery shopping. While the spending decreased in this industry, just like in other industries, it is expected to get back to pre-pandemic levels this year. This is only possible if jewellers go the digital route.
Opting for a digital platform will enable jewellers to reach more people and make new connections. Whether through an app or website, jewellers can do better in terms of revenue generation when they opt for digital mediums. It provides the ability to showcase all products digitally. With the help of technologies such as mirrAR, jewellers can increase conversions. According to a Shopify report, using AR for products increases conversion rates by a whopping 94% when compared to no use of AR. Jewellers can expect high ROI when they include AR in their offerings as they can expect higher levels of customer satisfaction due to improved experience.
Personalisation is one of the most effective CRO techniques. It also does wonders in driving higher customer retention and building lasting relationships with customers.
The future of the jewellery business in India is expected to be tied around personalisation. Many jewellery brands are already investing tons of resources in data analysis and solutions that are aimed at personalising their communication with the target audience.
For instance, if an online customer has viewed a certain type of necklace, you can automatically recommend them similar necklaces to personalise their shopping experience. Similarly, if a customer came to your physical store and purchased a bracelet, you can send them emails that are tailored around this purchase. Something like "that braid cluster diamond bracelet you purchased last month would go exceptionally well with our new collection of Millie cutout earrings".
Such a level of personalisation assures greater ROI. And that's precisely what we will see in the jewellery industry in India in the coming years, with more retailers embracing it.
In a new age of creativity, artists from various fields are teaming up with each other. In the fashion realm, these joint ventures have been mainstream for quite a while, and now the jewellery industry in India is adopting this shift. Starting a jewellery business is something incredible. And developing it into a successful company is just as exciting. But reaching that phase requires tons of work. While some jewellery businesses have long banked on paid ads on social media, such as Facebook and Instagram, the trend is gradually reaching its saturation point.
So, how to do jewellery business in India in such a situation?
At a time when customers want to see credibility and expect higher brand engagement, partnering with other brands in different niches is a great move. A product-driven strategy, underpinned by partner marketing content, works miracles.
Teaming up with brands that complement their own products ensures wider reach and greater brand exposure. For example, jewellery retailers can get together with other fashion brands and connect with their target audience who might be interested in jewellery as well.
Such partnerships have been growing across different niches. And it’s time more jewellery business owners get on board. Some of the top jewellery brands are already paving the way with their own successful partner marketing campaigns. In the coming years, we may witness this trend deepen further and make a big mark in the future of jewellery business in India.
In 2021, searching for customers, keeping their attention, and retaining them for the long term has become increasingly tricky. Now with customers having a plethora of options, jewellery businesses must constantly adapt to fulfil their customers' needs to keep them around. The significance of customer retention has never been more evident.
Also, engaging with an existing customer is easier and more cost-efficient than acquiring new ones. In fact, just a 5% rise in customer retention can increase a business’s revenue by 25-95%. Such numbers don't lie... Retaining customers brings businesses a great deal of ROI.
Sadly, even a casual Indian online jewellery market analysis can highlight many retailers focusing too much on newer acquisitions, completely overlooking their existing customer base. For higher business sustainability and to achieve optimum returns, it’s almost essential for these retailers to have a clearly defined customer retention strategy. And that’s what, many market pundits believe, is expected in the coming years: A lot more focus on retaining existing customers. This is especially true, and much needed, for small and medium-sized jewellers who don’t have a strong brand presence, which can result in higher Customer Acquisition Cost (CAC).
The pandemic has been a major reason behind the push towards innovation and innovation is the key for the future of jewellery business in India. What wasn’t witnessed in years was witnessed within months across the globe. This goes on to show the massive potential of retailers and how they can tread unknown territory when innovation is the only key to survival. The virtual try-on technology received a hearty welcome during the pandemic because it helped retailers and customers. Retailers knew they could continue to provide the best experiences to customers. Customers had more time in their hands and they were happy that they could get an in-store experience hands-free while they sat on their comfy couch.
Virtual try-on takes off pressure from customers, which is why more people are preferring it over in-store shopping. Customers can easily try on as many products as they wish and they don’t have to go anywhere. Moreover, they can take their own time when selecting what to try on. This relaxed way of shopping means a higher chance of conversions. Virtual try-on technology gives the best of the in-store experience, which is trying on an item, and merges it with the convenience of online shopping. Virtual try-on has proved to boost customer engagement to the next level.
Retailers can expect virtual try-on tech to accelerate their revenue because more people are willing to try and then buy. Trying something on before making a purchase instills confidence in customers. It doesn’t expect them to make a purchase instantly as might be the case when they shop in-store where a salesperson is waiting for their decision. This confidence encourages shoppers to spend more after they try. Research shows businesses with virtual try-on facilities experience significantly lower return rates which can help cut costs for businesses and points to happier and satisfied customers. This can help improve brand image and can help in better business growth.
The virtual try-on feature isn’t an option anymore because if staying competitive is the goal of the retailer, then having this facility is almost mandatory. It is the road ahead for retailers if they want to survive now and stay relevant in the future. With a powerful solution such as mirrAR, jewellers have the option of allowing their customers to try on the jewellery virtually. mirrAR enables jewellers to allow customers to virtually try-on items in-store, using their app, or on their website. The future of jewellery retail is here. The question is, when are you willing to take the leap and unlock the possibilities that await?
Stats source: 1, 2, 3, 4